I am pleased to reproduce my comments I posted at Reuters: It is a case of `Matsanyaya’ matsya means fish nyaya means justice, where big fish swallows the smaller ones. I agree with you, Hedge Fund managers may feel lucky this time but they are always vulnerable, waiting for the tsunami with patience. But please address the issue direct – what’s wrong in getting the insider information and what’s the need for insider probe? The system provides for such misfeasance. It is like match fixing. The team member is bribed to act in a manner the fixer walks away with the loot in a speculative market.
What’s the solution? Fix the system. Correct the situation at the core corporate level. We allow legally loopholes within a balance sheet and then yell about the misuse. It has happened before and continues to happen i.e. Intangible Asset, an oxymoron. This in my opinion singly sucked all the money in the banking system to unproductive enterprises creating a bubble of speculative transactions. Hedge Funds is the outcome of the intangible asset enterprise stoking the fire of greed.
IASB-IFRS is repeating the same error, like the person who sold Eiffel Tower twice, to introduce Hedge Accounting. Please see Exposure Draft Hedge Accounting http://wp.me/p18MVb-5u and comment upon it directly to IASB.
My suggestion is to bring the inside information out, twice over to the public arena by Governance Reporting on a real-time monitoring basis identifying the critical areas: Please see HACCP of Governance http://wp.me/p18MVb-5i and other areas I have covered in my blog.
I do not know whether giving reference to my blog would be considered by Reuters as infringing the House Rules. If so, please do not hesitate to advice me for my knowledge.
Jayaraman Rajah Iyer
Pilant's Business Ethics Blog 